On a recent episode of Mad Money, Jim Cramer took a moment to celebrate the two-year anniversary of the current bull market. He mentioned that this particular bull market has been quiet and gentle, which he attributes to the unusual circumstances surrounding its rise. “The whole first year of this bull’s life was an anomaly. That’s because the Fed was furiously tightening and the market went up anyway,” Cramer explained.
He emphasized that for the past two years, opportunities have been evident, stating, “Every night I say there’s always a bull market somewhere, and for the last two years, well, it’s been right in front of you.”
Cramer then went on to discuss the lead performing stocks and ended the segment, saying:
“The bottom line, if you’re going to buy these stocks, I’d go first with Nvidia, then with Broadcom, and finally Fair Isaac, if only because we need something that’s not connected to the data center, even as we know, it will remain a strong story for the ages.”
Cramer also advised investors to shift their focus away from the consumer price index (CPI) report, suggesting that its significance has diminished since the Federal Reserve began cutting rates.
“We had to be concerned about this stuff when the Fed was on the warpath, either raising rates or leaving them higher for longer. Now, though, the Fed is your friend, so I wouldn’t obsess about the details.”
He did emphasize, however, that the monthly labor report remains important in the current climate. He remarked on the tendency for many to become “Fed watchers,” suggesting that this reliance on government data can detract from the deeper analysis of individual companies. Cramer referenced Austan D. Goolsbee, president of the Chicago Fed, who advised against an overemphasis on CPI data, as the Fed is unlikely to base decisions on it. Cramer explained:
“When the Fed’s raising rates in order to stamp out inflation, it can be very important. When we’re in a rate hike cycle, you’re trying to figure out when that’s going to end. But we’re not in that kind of cycle anymore. We’re in a rate cutting cycle.”
Cramer explained that last month the Fed implemented a double rate cut, setting a downward trend that is expected to continue. He added:
“Sure, if we had a huge spike in the CPI this morning, then maybe the Fed would change its stance. But that would have to be an extreme reading. And there’s nothing extreme about today’s 2.4% inflation number, just a tick above the expected 2.3, still down from the 2.5% reading from the prior month.”
Cramer concluded with a strong reminder about the nature of investing. “Forget the macro, people. It’s not that meaningful when the Fed’s cutting rates. And keep your eyes on the prize: Earnings,” he urged. Ultimately, he reinforced that earnings dictate stock prices in the long run, and that’s where the focus should be for those looking to make money in the market.
Jim Cramer’s Best Performers List: 12 Stocks Cramer is Talking About
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For this article, we compiled a list of 12 stocks with the biggest gains over the past 2 years that were mentioned by Jim Cramer during his episode of Mad Money on October 10. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey’s database of more than 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Jim Cramer’s Best Performers List: 12 Stocks Cramer is Talking About
12. Fair Isaac Corporation (NYSE:FICO)
Number of Hedge Fund Holders: 42
Cramer discussed Fair Isaac Corporation (NYSE:FICO) and mentioned the universal use and recognition of FICO scores. He fully endorses the stock and thinks the company is great.
“We’ve talked about the fifth biggest winner, it’s called Fair Isaac, before. In fact, we had the CEO, William Lansing, really impressive fellow, on the show a couple times this year. This one does credit score. You probably know it as FICO, and it’s by far the best at what it does. The FICO score is universally used, and no competitor comes close to its predictive power. I think Fair Isaac could be bought tomorrow morning, even with the stock up 390% in the past two years. And that is how great the company is. Full endorsement.”
Fair Isaac (NYSE:FICO) specializes in creating analytic and software solutions that empower businesses to automate and refine their decision-making processes. Additionally, its products include adaptable software platforms and scoring solutions that incorporate predictive analytics and can be seamlessly integrated into their transaction workflows and decision-making processes.
In its third quarter of fiscal 2024, Fair Isaac (NYSE:FICO) reported a revenue increase of 12.3% compared to the previous year, reaching $447.8 million. The company’s adjusted EPS also saw a rise, climbing to $6.25 from $5.66 a year earlier. It aligns well with the updated full-year earnings guidance of $23.16 by management.
On October 1, Wells Fargo analyst Jason Haas raised the price target on the stock to $2,200 from $2,100 and kept an Overweight rating. He also included the stock in the “Q4 Tactical Ideas List.” The firm projects a potential pricing advantage of nearly $200 million for fiscal year 2025 if FICO raises its mortgage score price to $5.00, with additional growth expected from pricing in the auto and card sectors.
11. Palantir Technologies Inc. (NYSE:PLTR)
Number of Hedge Fund Holders: 44
Cramer called Palantir Technologies Inc. (NYSE:PLTR) a good company and talked about its stock performance. Here’s what he said:
“Okay, the next one may be the craziest stock of the year. It’s called Palantir. It’s a defense contractor, AI kicker. It’s been a very good company, but more important, it’s been a spectacular stock. In a year when the defense stocks and the AI stocks have been incredibly strong, this one is both, with a heavy emphasis on government contracts.
Palantir’s become a cold stock at this point though. You need to know that individual investors just they can’t seem to stay away from it. They buy it morning, noon and night. Right after the closing bell, there’s this big burst of buying that makes the stock look even better than it went out in regular trading. The stock’s real expensive but, but it’s gonna stay expensive because Palantir software is apparently beloved by the Pentagon as well as its rapid fans. Would I buy it up 439% in the last two years? No, but I definitely wouldn’t short it.”
Palantir (NYSE:PLTR) focuses on creating and implementing advanced software platforms, primarily tailored for the intelligence community. The launch of the Artificial Intelligence Platform (AIP) has significantly expanded the potential applications of its technology, leading to rapid adoption among commercial clients.
The platform is gaining traction across multiple sectors, including healthcare, insurance, energy, industrials, restaurants, and retail. In light of strong performance related to AIP, management has updated its full-year guidance, now anticipating a 23% revenue increase for 2024, an upward revision from the previous estimate of 21%.
On September 25, Palantir (NYSE:PLTR) announced a multi-year, multi-billion dollar extension of its enterprise agreement with APA Corporation, a significant player in the oil and gas sector. The agreement, originally established in 2021, builds upon the successful deployment of the company’s software across APA’s global operations.
The renewed agreement introduces enhanced artificial intelligence capabilities through its AIP, showing the growing integration of AI in various business processes. Over the past three years, the company has supported APA in areas such as operational planning, supply chain management, maintenance planning, production optimization, and contract management.
10. Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 47
While Cramer included Super Micro Computer, Inc. (NASDAQ:SMCI) in his list of best performers over the past 2 years, he did highlight the stock stalling over the past few months. Here’s what he said:
“Second best performer, Super Micro Computer. This company makes hardware that goes hand in hand with NVIDIA. Hence, its incredible 786% run. Lately though, Super Micro stalled. It had a weak second quarter. I’ve always thought that when you have a primary idea like NVIDIA and a secondary idea like Super Micro, you don’t need the latter.”
Recently, Cramer has made bearish remarks about the company. During October 9’s episode of Mad Money, he said:
“It’s too hard. Just go Buy NVIDIA. SMCI was down terrible, terrible last few weeks, but I really want you to be in NVIDIA, not SMCI.”
Super Micro Computer (NASDAQ:SMCI) focuses on creating and manufacturing high-performance server and storage solutions. Currently, the company announced that it is experiencing significant demand for its products as it is shipping over 100,000 graphics processing units (GPUs) for artificial intelligence applications each quarter. Additionally, the company called itself a leader in the liquid cooling sector, having delivered more than 2,000 liquid-cooled racks since June.
However, it should be noted that Super Micro Computer (NASDAQ:SMCI) is facing a slight delay in reporting its annual financial results, which were originally expected in August. The postponement is attributed to management needing extra time to evaluate the effectiveness of internal controls over financial reporting as of June 30.
Despite this delay, CEO Charles Liang provided reassurance in a letter that no significant changes to previously released financial reports are anticipated and that operations in engineering, production, and sales related to large-scale AI solutions continue as planned.
9. Royal Caribbean Cruises Ltd. (NYSE:RCL)
Number of Hedge Fund Holders: 48
Royal Caribbean Cruises Ltd. (NYSE:RCL) was part of Cramer’s list. He discussed the sentiment around cruise lines at present compared to the pandemic and mentioned that they are a bargain.
“The cruise lines are as loved now as they were hated during COVID and the best performer of the group, as I say almost every night because you get a lot of questions about these, is Royal Caribbean, RCL. Cruises are a tremendous bargain, while hotel rooms, rates, and other forms of entertainment have just gotten to be too expensive. By the way, airline tickets, wow. There’s not a lot of new capacity coming on in the fleet business. They take forever to build these ships. Forever. Bookings are explosive. You can still buy the stock.”
Royal Caribbean Cruises Ltd. (NYSE:RCL) operates as a global cruise line, managing several well-known brands including Royal Caribbean International, Celebrity Cruises, and Silversea Cruises. In second the quarter, the company welcomed just over 2 million passengers aboard its vessels. The company reported an adjusted EPS of $3.21, surpassing initial guidance. The strong performance was attributed to higher pricing due to close-in demand and sustained onboard revenue, along with the favorable timing of expenses, which contributed approximately $0.15 to the results.
As of June 30, the customer deposit balance stood at an impressive $6.2 billion. The CEO mentioned that the company achieved financial targets 18 months ahead of schedule, indicating a focus on capturing a larger share of the burgeoning $1.9 trillion global vacation market.
With ongoing strong demand for its vacation offerings, Royal Caribbean Cruises Ltd. (NYSE:RCL) has raised its full-year 2024 adjusted EPS guidance to a range of $11.35 to $11.45, which is a significant year-over-year growth of 68%. The company is also looking to the future with an exciting lineup of new ships on order, including the Celebrity Xcel set to launch in late 2025, and Royal Caribbean’s Star of the Seas debuting in mid-2025. Additionally, its plans include a third Icon class ship slated for 2026 and a seventh Oasis class ship expected in 2028.
8. GE HealthCare Technologies Inc. (NASDAQ:GEHC)
Number of Hedge Fund Holders: 49
Cramer mentioned that GE HealthCare Technologies Inc. (NASDAQ:GEHC) is working to find its footing and talked about the headwinds faced by the stock that are slowly evaporating.
“GE HealthCare, which we own for the Charitable Trust, is a laggard that makes MRI machines and other big ticket medical devices. Now, it is just starting to get its sea legs. After COVID knocked it back, Chinese orders slowed and high financing cost has dragged it down. You need to borrow money, these things are so expensive, in order to buy these. But all those negatives are indeed dissipating so the stock can work its way hard.”
GE HealthCare (NASDAQ:GEHC) is involved in developing, manufacturing, and marketing a variety of products, services, and complementary digital solutions that assist in the diagnosis, treatment, and monitoring of patients. On October 1, Evercore ISI raised the price target on the stock to $102 from $98 and maintained an Outperform rating.
The firm made a note that utilization within the MedTech space remains positive as the industry progresses into the third quarter, with a favorable capital expenditure outlook for the upcoming year. In the life sciences segment, trends in bioprocessing are expected to improve in the latter half of the year, although there is ongoing discussion regarding the outlook for instruments and the impact of potential stimulus in China, particularly in light of recent stocks’ performance in the sector.
In the second quarter, GE HealthCare (NASDAQ:GEHC) announced a significant partnership with Amazon Web Services (AWS) to explore the use of generative AI in transforming healthcare delivery. The partnership is looking to optimize processes and better patient care through cutting-edge technology.
7. Arista Networks, Inc. (NYSE:ANET)
Number of Hedge Fund Holders: 65
Cramer mentioned that Arista Networks, Inc. (NYSE:ANET) is unsung among the winners and is a dominant player in various types of switches and more.
“I just have such a soft spot for such a good company. It’s called Arista Networks. It is probably the most unsung of all these winners because it’s a dominant player when it comes to network infrastructure for the cloud. But nobody ever sees it.
Yeah, it’s got a lot of business with the data center. I know this is tiresome, but it works. Arista hit an all-time high today. I think it’s got more room to run because this is the dominant player in all sorts of switches, adapters, and networking services that people don’t really care about but are making you a lot of money.”
Arista Networks, Inc. (NYSE:ANET) focuses on developing, marketing, and selling data-driven networking solutions tailored for data center, campus, and routing environments. On October 7, Citi raised the price target on the stock to $460 from $385 and kept a Buy rating. The adjustment aligns with the firm’s upgraded growth outlook for capital expenditures among the “Big Four” cloud providers, which is projected to rise from 40% to 50% year-over-year for 2024.
This positive trend is attributed to strong data center spending in the first half of the year, along with optimistic commentary from the company. Citi forecasts that investment in data center infrastructure will continue to expand due to ongoing demand driven by artificial intelligence, with an expected growth of 40% in 2025.
In August, Arista Networks, Inc. (NYSE:ANET) was selected by the Alabama Fiber Network (AFN), a consortium of eight electric cooperatives, to supply routing and switching equipment for an extensive middle-mile network initiative. The project, which is part of the Be Linked Alabama initiative backed by the State of Alabama, aims to deliver a 6,600-mile open-access network across all 67 counties. The AFN’s investment exceeds $340 million, and the company’s high-performance 7280SR3 platform has been chosen to support this critical broadband expansion.
6. GE Aerospace (NYSE:GE)
Number of Hedge Fund Holders: 86
Cramer mentioned GE Aerospace (NYSE:GE) while talking about the bull market and how General Electric split into three separate businesses. He said:
“When this bull market was born, General Electric was still one company. Now it’s three companies: GE Aerospace, GE HealthCare, GE Vernova. I like them all. With Boeing and Airbus having huge production problems, airplanes need to last longer. So GE’s aerospace engine service business is on fire.”
GE Aerospace (NYSE:GE) is involved in the design and production of engines for commercial and defense aircraft, along with integrated engine components, electric power systems, and mechanical aircraft systems. The company serves two primary markets, consumer air carriers and the military sector, establishing itself as a leading manufacturer of turbine engines.
With tens of thousands of GE engines operational globally, the ongoing need for maintenance and servicing plays an important role in the company’s business model. This recurring revenue stream constitutes approximately 70% of the company’s overall income, contributing to the stock’s stability across various economic conditions. Management forecasts low double-digit revenue growth through 2028.
In the second quarter, GE Aerospace (NYSE:GE) reported strong performance, with total orders increasing by 18% year-over-year to reach $11.2 billion. Adjusted revenue rose by 4%, totaling $8.2 billion, while profit margins improved significantly, with a 560 basis point increase resulting in a 37% rise in operating profit.
To address expected growth in maintenance, repair, and overhaul (MRO) activities, the company has announced plans for a $1 billion investment over the next five years. Through the investment, it seeks to expand and upgrade MRO facilities worldwide, including a recent agreement to acquire a dedicated LEAP test cell.
5. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders: 92
While Cramer said that Vistra Corp. (NYSE:VST) is a little overdone, he still likes the stock. He stated:
“Third is a company we’ve been talking increasingly about this year. It’s called Vistra and this one’s about the data center too. Vistra’s one of the largest independent power producers. Nuclear capacity, which means reliable carbon-free energy. Data centers are voracious consumers of energy and the companies that use them can’t get enough of. Now. I personally think the stock’s a little overdone given its 479% move, but the next time it has one of its monster pullbacks, which do occur, I would do some buying.”
Vistra Corp. (NYSE:VST) is a retail electricity and power generation company. The company serves residential, commercial, and industrial customers across the United States and the District of Columbia, providing both electricity and natural gas. In addition to its retail operations, the company is actively involved in electricity generation, wholesale energy transactions, commodity risk management, fuel production, and fuel logistics management.
Currently, the company has a generation capacity of 41,000 megawatts (MW), with 24,000 MW sourced from natural gas. However, the market’s attention has increasingly turned towards the company’s 6,400 MW of nuclear power. The company increased its nuclear power capacity as it added 4,000 MW of nuclear capacity through the purchase of Energy Harbor in March for $3.43 billion.
The deal not only added four nuclear-generating facilities to Vistra Corp.’s (NYSE:VST) portfolio but also positioned the company as holding the second-largest energy storage capacity in the United States, with 1,020 MW. The timing of the acquisition aligns well with the current enthusiasm surrounding generative AI, potentially providing the company with advantageous opportunities.
In September, the company announced plans to acquire the remaining 15% of Vistra Vision, the subsidiary that runs its nuclear-generation facilities, renewable energy projects, and energy storage operations.
4. GE Vernova Inc. (NYSE:GEV)
Number of Hedge Fund Holders: 92
Talking about how GE Vernova Inc. (NYSE:GEV) is a result of General Electric splitting, Cramer said:
“GE Vernova was supposed to be the lagger because it represented GE’s long-suffering power business. But with power generation suddenly in incredible demand thanks to, yes, the data center, Vernova’s natural gas turbines are flying off the proverbial shells. Wind’s not bad either as long as it’s onshore and one day, nuclear plants will be built in great number. They know how to build small-form-factor nukes. That’s all Vernova.”
GE Vernova Inc. (NYSE:GEV) operates as an energy company that offers a variety of products and services associated with electricity generation, transfer, orchestration, conversion, and storage. Recently, the company was chosen to enter into award negotiations with the U.S. Department of Energy’s Hydrogen and Fuel Cell Technologies Office to lead a project focused on facilitating permitting and safety for hydrogen deployment. This initiative is backed by $1 million in federal funding from the DOE, with the terms and scope of the project still to be finalized.
A key component of the program involves H2Net, which is set to develop an AI Assistant tailored specifically to the critical documents necessary for safe hydrogen handling and permitting.
Additionally, on October 8, GE Vernova Inc. (NYSE:GEV) announced an order for three of its advanced 7HA.03 gas turbines to be installed at The Kansai Electric Power Company’s Nanko power station in Osaka, Japan. These turbines will replace older conventional LNG power generation assets, improving the overall efficiency of the plant while simultaneously reducing carbon dioxide emissions. According to Ramesh Singaram, President and CEO of GE Vernova’s Gas Power division in Asia, this plant is anticipated to deliver up to 1.8 gigawatts of electricity to the grid, positioning it among the most efficient power plants in Japan.
3. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 130
Cramer highlighted that he has been excited about Broadcom Inc. (NASDAQ:AVGO) for some time and made a note of its VMware division.
“Broadcom makes data center plumbing, but also has a broadband infrastructure business, including cell phones. Now, we had CEO Hock Tan on when he went to San Francisco. He told an incredible story. I was so excited, I was jazzed about it, but nobody listened.
Well, now they’ll listen. Stock just hit an all the time high today. It’s not done. I’d hold onto it, especially since its VMware division helps data centers cut harbor costs and operate much more efficiently. And it has really turned the corner. I like that stock very much.”
Broadcom (NASDAQ:AVGO) is a nearly $850 billion company and is engaged in designing, developing, and supplying a wide range of semiconductor devices, with a rich history in semiconductor design. The company has established a formidable portfolio of intellectual property that positions it well in the competitive industry of artificial intelligence among major technology firms.
Broadcom’s (NASDAQ:AVGO) networking chips play an essential role in the infrastructure of AI data centers, facilitating the rapid and efficient transfer of data between servers, which improves overall data center performance. In addition to its networking chips, the company has expanded its footprint in AI through its acquisition of VMware in late 2023, which allows users to create virtual desktops in the cloud. It has further solidified its position in high-growth sectors, as AI networking chips for Ethernet and VMware’s software are expected to account for more than half of the company’s revenue in the near future, potentially accelerating overall growth.
During the third-quarter earnings call, CEO Hock Tan noted the impressive scale-up of AI operations among hyperscale customers. He highlighted that custom AI accelerators have seen a remarkable year-on-year growth of three-and-a-half times.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 179
Here’s what Cramer had to say about NVIDIA Corporation (NASDAQ:NVDA):
“People are just beginning to realize that maybe it wasn’t just a gaming company with some real fast graphics chips…Eventually, NVIDIA and its renaissance man, CEO Jensen, pioneered both accelerated computing and generative AI. We speak too much about the latter, not enough about the former. Accelerated computing is what makes things really work here. In other words, NVIDIA created machines that think faster than you do and soon will do almost anything better than you can do
Now, I don’t want you freaking out. We’re in charge here. We make the decisions, but AI saves a lot of time… which is why it’s such a revolutionary technology for the enterprise and it’s about to get even better because we’ll see an amazing jump on the fly thinking from generative AI when NVIDIA’s new line of Blackwell chips gets fully deployed next year. They are so powerful, so fast, these guys basically invented a chip that is so quick that it created the entire AI business outta thin air. It wasn’t possible before, but now it can do incredible things and very soon it’ll be both faster and better.
By the way, I think it’s gonna do some stuff with video that’s gonna blow you away. I’ve never seen a company have such demand for its products, including demand from Tesla, which needs Nvidia for self-driving cars… The whole thing’s remarkable and the stock’s 1072% gain over the past two years was right there for the taking. As CNBC Investing Club members well know, I do think it’s got more upside, which is why I always say own it, don’t trade it. It does put a smile on my face.”
NVIDIA (NASDAQ:NVDA) initially gained widespread recognition in 1999 with the introduction of the GeForce 256, celebrated as the world’s first graphics processing unit (GPU). Today, it maintains a dominant position in the GPU market, largely thanks to its A100 and H100 chipsets, which have significantly contributed to the company’s record revenue and profit growth over the past few years.
The company’s new Blackwell series GPUs are anticipated to become a major product for the company. CEO Jensen Huang recently expressed excitement about the overwhelming demand for Blackwell, commenting that interest is incredibly high and that many are eager to be at the forefront of this innovation.
Among the noteworthy advancements is NVIDIA’s (NASDAQ:NVDA) concept of “physical AI,” which involves the deployment of semi-autonomous robots capable of interacting in real-world environments. A significant partnership with Foxconn, the electronics supplier, is already in place to develop and train AI-driven robots.
In the second quarter, the company reported a remarkable 122% increase in revenue compared to the previous year, reaching $30 billion. It was fueled by a heightened demand for data center GPUs, particularly the H100 and H200 models.
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 219
Cramer mentioned Meta Platforms, Inc. (NASDAQ:META) in his list of stocks with the biggest gains. He emphasized Mark Zuckerberg’s assertion that future ad campaigns will focus on Instagram and Reels and said:
“Honestly, how can you have a bull birthday party without inviting Meta, without inviting Mark Zuckerberg? I would never think of it. His last conference call told you a tale that made it sound like all ad campaigns will soon start on Instagram and reels. Am I going to doubt this fella? No. He has the AI to design the most effective targeted ads and you don’t need to hire an advertising agency. Much better return on investment.”
It is a leading technology company that focuses on creating products designed to facilitate connections and sharing among users through a variety of devices, including mobile phones, personal computers, virtual reality headsets, and wearables.
The financial performance of Meta (NASDAQ:META) has been remarkable over the years, largely driven by the ongoing shift toward digital advertising. As the global digital advertising market is expected to expand from $366 billion in 2022 to over $1 trillion by 2030, the company is well-positioned to capitalize on this growth.
With nearly 3.3 billion daily active users across its platforms, the company generates significant advertising revenue. In its most recent quarterly report, Meta (NASDAQ:META) recorded an impressive $38.3 billion in ad revenue and a 22% increase in overall revenue compared to the previous year. The growth is particularly noteworthy given the scale of the company, which points to a strong demand for its advertising capabilities.
While we acknowledge the potential of Meta Platforms, Inc. (NASDAQ:META) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than META but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Read Next: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
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